taxation
Income taxation
Under current law, there is an income tax exclusion for individuals for 60 percent of the net capital gains realized from the sale of assets held for at least one year.
Under this bill, for taxable years beginning after December 31, 2010, an individual; an individual partner or member of a partnership, limited liability company, or limited liability partnership; or an individual shareholder of a tax-option corporation (claimant) may elect to defer the payment of income taxes on up to $10,000,000 of the gain realized from the sale of any capital asset held more than one year (original asset) that is treated as a long-term gain under the Internal Revenue Code, if the claimant completes a number of requirements.
Under the bill, the claimant must place the gain from the original asset in a segregated account in a financial institution, must invest all of the proceeds in a qualified new business venture (QNBV) as certified by the Department of Commerce (Commerce), within 180 days after the sale of the original asset that generated the gain, and must notify DOR on a form prepared by DOR that the claimant is deferring the payment of income tax on the gain from the original asset because the proceeds have been reinvested. The claimant must send the form to DOR with the claimant's income tax return for the year to which the claim relates. The amount of the investment must be equal to or greater than the gain generated by the sale of the original asset. Under the bill, a business may be certified by Commerce if the business is engaged in developing a new product or business process, manufacturing, agriculture, or processing or assembling products and conducting research and development, except that Commerce may not certify a business engaged in certain activities including real estate development, insurance, banking, lobbying, wholesale or retail sales, leisure, hospitality, transportation, or construction.
The bill also specifies that the basis of the investment shall be the amount of the investment minus the gain generated by the sale of the original asset. If a claimant defers the payment of income taxes on the gain generated by the sale of the original asset, the claimant may not use that gain to net the claimant's gains and losses as the claimant could do if the claimant did not elect to defer the payment of taxes on the gain.
Because this bill relates to an exemption from state or local taxes, it may be referred to the Joint Survey Committee on Tax Exemptions for a report to be printed as an appendix to the bill.
For further information see the state fiscal estimate, which will be printed as an appendix to this bill.
The people of the state of Wisconsin, represented in senate and assembly, do enact as follows:
SECTION 1. 71.01 (13) of the statutes is amended to read:
71.01 (13) "Wisconsin adjusted gross income" means federal adjusted gross income, with the modifications prescribed in s. 71.05 (6) to (12), (19) and, (20), and (24).
SECTION 2. 71.05 (24) of the statutes is created to read:
71.05 (24) INCOME TAX DEFERRAL; LONG-TERM CAPITAL ASSETS. (a) In this subsection:
1. "Claimant" means an individual; an individual partner or member of a partnership, limited liability company, or limited liability partnership; or an individual shareholder of a tax-option corporation.
2. "Financial institution" has the meaning given in s. 69.30 (1) (b).
3. "Long-term capital gain" means the gain realized from the sale of any capital asset held more than one year that is treated as a long-term gain under the Internal Revenue Code.
4. "Qualified new business venture" means a business certified by the department of commerce under s. 560.208.
(b) For taxable years beginning after December 31, 2010, a claimant may subtract from federal adjusted gross income any amount, up to $10,000,000, of a long-term capital gain if the claimant does all of the following:
1. Deposits the gain into a segregated account in a financial institution.
2. Within 180 days after the sale of the asset that generated the gain, invests all of the proceeds in the account described under subd. 1. in a qualified new business venture.
3. After making the investment as described under subd. 2., notifies the department, on a form prepared by the department, that the claimant will not declare on the claimant's income tax return the gain described under subd. 1. because the claimant has reinvested the capital gain as described under subd. 2. The form shall be sent to the department along with the claimant's income tax return for the year to which the claim relates.
(c) The basis of the investment described in par. (b) 2. shall be calculated by subtracting the gain described in par. (b) 1. from the amount of the investment described in par. (b) 2.
(d) If a claimant defers the payment of income taxes on a capital gain under this subsection, the claimant may not use the gain described under par. (b) 1. to net capital gains and losses, as described under sub. (10) (c).
SECTION 3. 560.208 of the statutes is created to read:
560.208 Qualified new business ventures. (1) The department shall implement a program to certify qualified new business ventures for purposes of s. 71.05 (24). A business desiring certification shall submit an application to the department in each taxable year for which the business desires certification. Subject to sub. (2), a business may be certified under this subsection, and may maintain such certification, only if the business is engaged in one of the following:
(a) Developing a new product or business process.
(b) Manufacturing, agriculture, or processing or assembling products and conducting research and development.
(2) The department may not certify a business under sub. (1) if the business is engaged in real estate development, insurance, banking, lending, lobbying, political consultation, professional services provided by attorneys, accountants, business consultants, physicians, or health care consultants, wholesale or retail sales, leisure, hospitality, transportation, or construction.
(3) (a) The department shall maintain a list of businesses certified under sub. (1) and shall permit public access to the lists through the department's Internet Web site.
(b) The department of commerce shall notify the department of revenue of every certification issued under sub. (1) and the date on which a certification under sub. (1) is revoked or expires.
(End)
LRB-1320LRB-1320/1
PG:kjf:ph
2009 - 2010 LEGISLATURE
DOA:......Skwarczek, BB0338 - High school graduation requirements
For 2009-11 Budget -- Not Ready For Introduction
2009 BILL
AN ACT ...; relating to: the budget.
Analysis by the Legislative Reference Bureau
education
Primary and secondary education
Under current law, a school board may not grant a high school diploma to any pupil unless the pupil has earned, in grades 9 to 12, at least 4 credits of English, 3 credits of social studies, 2 credits of mathematics, 2 credits of science, and 1.5 credits of physical education.
Beginning with pupils graduating in 2013, this bill requires an additional credit of mathematics and of science.
For further information see the state and local fiscal estimate, which will be printed as an appendix to this bill.
The people of the state of Wisconsin, represented in senate and assembly, do enact as follows:
SECTION 1. 118.33 (1) (a) 1. of the statutes is amended to read:
118.33 (1) (a) 1. In the high school grades, at least 4 credits of English including writing composition, 3 credits of social studies including state and local government, 2 3 credits of mathematics, 2 3 credits of science and 1.5 credits of physical education.
SECTION 9339. Initial applicability; Public Instruction.
(1) HIGH SCHOOL GRADUATION REQUIREMENTS. The treatment of section 118.33 (1) (a) 1. of the statutes first applies to pupils graduating from high school in 2013.
(End)
LRB-1324LRB-1324/2
RCT:kjf:rs
2009 - 2010 LEGISLATURE
DOA:......Miner, BB0339 - Fee on animal slaughter for meat safety inspections and animal health
For 2009-11 Budget -- Not Ready For Introduction
2009 BILL
AN ACT ...; relating to: the budget.
Analysis by the Legislative Reference Bureau
Agriculture
This bill establishes an assessment to be paid to DATCP by persons who operate commercial establishments at which certain kinds of animals are slaughtered. The assessment per animal slaughtered is one cent for poultry, ten cents for calves, and 14 cents for older cattle and for swine. The assessment must be paid quarterly. The revenue from the assessment is appropriated for meat safety inspections and animal health programs.
For further information see the state fiscal estimate, which will be printed as an appendix to this bill.
The people of the state of Wisconsin, represented in senate and assembly, do enact as follows:
SECTION 1. 20.115 (1) (gg) of the statutes is created to read:
20.115 (1) (gg) Meat and poultry inspection. From the moneys received under s. 95.85 (3), the amounts in the schedule to be used for meat and poultry inspection under s. 97.42.
****NOTE: This SECTION involves a change in an appropriation that must be reflected in the revised schedule in s. 20.005, stats.
SECTION 2. 20.115 (2) (ha) of the statutes is amended to read:
20.115 (2) (ha) Inspection, testing and enforcement. All moneys received under ss. 93.06 (1f) and (1g), 95.55, 95.57, 95.60 (5), 95.68, 95.69, 95.71 and 95.715 and all moneys received under s. 95.85 (3) that are not appropriated under sub (1) (gg), to be used for animal health inspection and testing and for enforcement of animal health laws.
SECTION 3. 95.85 of the statutes is created to read:
95.85 Animal slaughter assessment. (1) DEFINITIONS. In this section:
(a) "Calves" means bovine animals that are not more than 6 months of age.
(b) "Cattle" means bovine animals that are more than 6 months of age.
(c) "Establishment" means a plant where cattle, calves, swine, or poultry are slaughtered for commercial sale for human consumption.
(2) ASSESSMENT. For each animal of a kind specified in this subsection that is slaughtered in an establishment, the person operating the establishment shall pay to the department an assessment equal to the following, except as provided under sub. (6):
(a) Fourteen cents for swine.
(b) Fourteen cents for cattle.
(c) Ten cents for calves.
(d) One cent for poultry.
(3) REPORTING AND PAYMENT. (a) A person operating an establishment shall submit to the department the quarterly report described in par. (b) and quarterly payment of the assessment under sub. (2) according to the following schedule, except as provided under sub. (6):
1. For January to March, by April 30.
2. For April to June, by July 31.
3. For July to September, by October 31.
4. For October to December, by January 31.
(b) A person operating an establishment shall submit a quarterly report that identifies the number of each type of animal described in sub. (2) slaughtered in the establishment in the previous quarter. The department may require additional information relevant to the assessment. The department shall keep confidential the information submitted under this subsection.
(c) A person who submits a quarterly report and payment of the assessment after the due date shall pay the department, in addition to the assessment, a surcharge equal to 1 percent of the assessment due for each month or fraction of a month that the payment is late. A person who submits a quarterly report that understates the number of animals slaughtered in an establishment and submits payment based on the inaccurate report shall pay the department a surcharge equal to 1 percent of the amount of the underpayment for each month or fraction of a month that the payment is late.
(4) LICENSE CONTINGENT ON PAYMENT OF ASSESSMENT. The department may not issue or renew a license related to the slaughter of animals for any establishment until the operator of the establishment pays any assessments and surcharges that are due under this section. The department shall refund an assessment or surcharge paid under protest if the department determines that the assessment or surcharge was not due as a condition of licensing under this subsection. If an assessment or surcharge is paid by check, a license issued in reliance upon that check is void if the check is not honored.
(5) INSPECTION OF RECORDS. The department may inspect, during regular business hours, any records that relate to this section. The department shall keep confidential any information obtained under this subsection concerning the number of animals slaughtered in an establishment.
(6) RULES. The department may promulgate rules for the administration of this section, including rules that modify the amount of the assessment under sub. (2) and rules that modify the schedule for reporting and payment under sub. (3) (a).
(7) PENALTY. A person who submits a report under sub. (3) that understates the number of animals slaughtered in an establishment may be required to forfeit not less than $500 nor more than $1,000 for each inaccurate report.
(End)
LRB-1326LRB-1326/6
EVM:bjk&cjs:md
2009 - 2010 LEGISLATURE
DOA:......Wavrunek, BB0325 - Allow second endangered resources license plate.
For 2009-11 Budget -- Not Ready For Introduction
2009 BILL
AN ACT ...; relating to: the budget.
